The British-based company hailed 2010 as a "transformational" year as it also started production at the Jubilee field in Ghana. However, slow progress in a tie-up in Uganda slightly soured the full-year results.

Aidan Heavey, chief executive, said: "With First Oil in Ghana and an excellent exploration and appraisal success rate, 2010 was undoubtedly a transformational year for Tullow.

"This contrasted with slower progress on our agreed farm-down in Uganda. However, good progress has recently been made towards gaining Government approval and establishing a strong fiscal and legal framework for the successful development of the basin."

Pre-tax profits rose to $152m (£94m) from £33m in 2009. Revenues rose 19pc to just over $1bn from £916m the previous year.

The price of Brent crude has soared as turmoil in the Middle East has escalated to the brink of civil war. Uncertainties over the production capabilities of Egypt, Algeria and Libya have led to oil hitting almost $120 earlier this month. The price has since eased back - on Wednesday it was at $113.

This helped to offset a fall in production, to 58,100 boepd from 58,300 in 2009. The Jubliee operation in Ghana saw production of more than 69,000 boepd, and the company expects full production capacity of 120,000 boepd is to be reached in the next five months.

However, the company said progress on a key deal in Uganda to bring in two new partners, French oil major Total and Chinese giant CNOOC, had been hit by elections in the country.

Despite Mr Heavey saying he was optimistic that the deal would go ahead, Tullow shares fell 42p to £14.18 in early trading on Wednesday.

Investec said the uncertainty would unsettle the market: "Tullow has reported full-year numbers which do not provide any real new news regarding the Ugandan farmdown. This may frustrate the market. However, the company remains a prolifically successful explorer and we maintain our 'Buy' recommendation," the broker said in a note.

Mr Heavey said: "2011 has started very well with production increasing from Jubilee and continued exploration and appraisal success. With a diverse 40-well E&A campaign planned for 2011, we look forward to another year of significant progress."

A final dividend of 4p per share, bringing the total payout for 2010 to 6p per share, will be paid on May 20.